Top 150+ Solved Advance Accounting MCQ Questions Answer
Q. Single entry system is mixture of single entry, double entry and no entry.
a. true
b. may be false
c. only true
d. none of the above
Q. They record a few translation completely just like the double entry system but a majority of the transactions are recorded only partially is known as incomplete records.
a. true
b. false
c. both a and b
d. none of the above
Q. Under single entry system the profit and loss can be found out and also it’s comparison will be available.
a. true
b. false
c. both and b
d. only false
Q. Profit and losses can’t be ascertained because Trading and Profit and loss account can’t be prepared.
a. true
b. false
c. may be true
d. may be false
Q. When the concept of ratio is defined in respect to the item shown in thefinancial statements, it is termed as
a. Accounting ratio
b. Financial ratio
c. costing ratio
d. none of the above
Q. The relationship between two financial variables can be expressed in:
a. Pure ratio
b. Percentage
c. Rate or time
d. all the above
Q. Stock is considered as a liquid asset as anytime it can be converted into cash immediately.
a. Yes
b. No
c. Only YES
d. None of the above
Q. Return on properties funds is also known as.
a. Return on net worth
b. Return on shareholders fun
c. Return on the shareholders investment
d. All the above
Q. Liquid asset is determined by
a. Current asset - stock - prepaid expense
b. Current asset + Stock +prepaid expense
c. Current asset + prepaid expense
d. None of the above
Q. Which of the following is not included in current assets.
a. Debtors
b. Stock
c. Cash at bank
d. Cash in hand
Q. Liquidity ratios are expressed in
a. Pure ratio form
b. Percentage
c. Rate or time
d. None of the above
Q. Working capital turnover ratio can be determined by :
a. ( Gross profit / Working capital )
b. ( Cost of goods sold / Net sales )
c. ( Cost of goods sold / Working capital)
d. None of the above
Q. Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
a. 5 times
b. 6 times
c. 3 times
d. 1.5 times
Q. The ratio analysis is helpful to management in taking several decisions, but asa mechanical substitute for judgement and thinking, it is worse than useless.
a. True
b. False
c. may be false
d. both a and b